Financial Culture among Albanian Young People and Its Impact on the Economy

Arbi Agalliu

doi:10.5901/mjss.2014.v5n23p690

Abstract

In the context of massive changes happening globally in the financial market, nowadays, the issue of financial knowledge of the consumer has been awarded an ever-increasing importance. The economic crisis and quotidian changes add to the complexity of the decisions individuals have to make. On that vein, financial literacy becomes a very important element that directly influences the economic growth of a country. Thus, individuals with relevant financial knowledge will make more responsible decisions that will affect not only the personal and familiar economic growth but also the whole country’s well-being. Financial education affords us positive long-term results in a country’s economy. This study has been focused on testing of the financial education of Albanian students, a target-group that in near future will represent the family man and the consumer on a societal basis. Nowadays the youths need to face and handle financial situations that are arguably tougher than the ones faced by their parents at the same age. Our paper is based on an empirical model. This model will show how their financial knowledge is related to different socio-demographic variables. Furthermore, descriptive analysis will analytically provide a resume on the nature, levels, problems and deficits of the Albanian youth’s financial literacy. DOI: 10.5901/mjss.2014.v5n23p690

Highlights

Individuals should learn to how care about their finances upon them starting to individually manage their money
To concretize this result, a comparison was made between the results derived from the students of economy and students of other majors for 2 important components of this research: familiarization with financial products and the most important financial concepts
The same conclusion was reached by the research conducted in Albania earlier two years: men appeared more likely than women to possess higher financial culture

Summary

Introduction

Individuals should learn to how care about their finances upon them starting to individually manage their money. Globalization has connected the financial markets throughout the world, resulting into a higher number of providers and a higher number of financial products and services varying from the simplest to the more complex ones. It is often times impossible for consumers to understand what these financial products and services representand which are the benefits they bring to consumers. Financial education is the best means to equip individuals with the financial knowledge they need and to drive them to put such knowledge to use when choosing between financial products and services, this way making the most efficient choice This knowledge should be induced at an early age as it is very important to educate the youngsters who will be the future financial consumers of the country. In this research paper the financial culture among Albanian students will be put to test

Overview on the Existing Culture

Results

Survey conducted by the author in June 2013 with college students

Family and Financial Education

Conclusions and Recommendations